{"id":13004,"date":"2022-04-27T19:39:52","date_gmt":"2022-04-27T23:39:52","guid":{"rendered":"https:\/\/www.resourcepro.com\/carriers-and-the-decline-in-insurance-agent-education\/"},"modified":"2025-11-05T11:46:58","modified_gmt":"2025-11-05T16:46:58","slug":"carriers-and-the-decline-in-insurance-agent-education","status":"publish","type":"post","link":"https:\/\/www.resourcepro.com\/blog\/carriers-and-the-decline-in-insurance-agent-education\/","title":{"rendered":"Carriers and the Decline in Insurance Agent Education"},"content":{"rendered":"\r\n

Susan serves as VP, Growth Solutions, and Frank is Practice Leader, Growth Solutions at ReSource Pro.<\/em><\/p>\r\n\r\n\r\n\r\n

The chase for credits, not higher learning<\/strong><\/h2>\r\n\r\n\r\n\r\n

Insurance agents frequently, and sometimes sheepishly, admit that they can invest just one hour of their time and secure five hours of continuing education credits (CE). Sadly, what started as a good idea\u2014 requiring licensed insurance professionals to continue their education throughout their career\u2014has too frequently degenerated into, \u201cI need some CEs before the end of the month.\u201d Professional associations and other training organizations are reporting that insurance education has eroded into more of a chase for CEs and less of a quest for higher learning.<\/p>\r\n\r\n\r\n\r\n

The erosion of insurance education is occurring at the worst possible time. Risks facing businesses and individuals<\/a> are increasingly complex and potentially catastrophic. An acceleration of retiring insurance professionals will cause a massive loss of intellectual capital over the next 5-10 years. And the increased use of data and technology<\/a> to tailor insurance product design, pricing, and delivery are likely to speed up the trend to further commoditize insurance.<\/p>\r\n\r\n\r\n\r\n

Will agents have a role in the future?<\/strong><\/h2>\r\n\r\n\r\n\r\n

There is an emerging consensus among global consulting firms that there will be fewer insurance agents in the future. According to McKinsey\u2019s Agents of the Future: The Evolution of Property and Casualty Insurance Distribution<\/a>, \u201cWhere agents once served as the front line in risk selection and pricing, advances in predictive models are making this role obsolete. The increasing sophistication and accuracy of predictive models and the rise in straight-through underwriting are diminishing the agent\u2019s role in risk selection.\u201d<\/p>\r\n\r\n\r\n\r\n

If the premise is true that participation in quality insurance education is eroding, and McKinsey and other consulting firms are correct, then insurance companies need to ask themselves the following questions:<\/p>\r\n\r\n\r\n\r\n